Quoin Pharmaceuticals — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of approximately $4.9 million for the quarter ended September 30, 2026, compared to $3.9 million for the same period in 2025.
• Net loss for the nine months ended September 30, 2026, was approximately $15.2 million, compared to $11.5 million for the nine months ended September 30, 2025.
• Cash, cash equivalents, and marketable securities totaled approximately $33.2 million as of September 30, 2026, up from $20.4 million in total assets as of December 31, 2025.
• Total operating expenses for the quarter were $4.92 million, with Research and Development at $2.66 million and General and Administrative at $2.27 million.
• Loss per ADS was $(0.97) for the quarter ended September 30, 2026, compared to $(6.71) for the same period in 2025.
• Total shareholders' equity increased to $28.7 million as of September 30, 2026, from $13.1 million as of December 31, 2025.
• Total liabilities decreased to $6.0 million as of September 30, 2026, from $7.3 million as of December 31, 2025.

Guidance and Future Outlook:

• Management expects to complete recruitment of all 20 participants in the Netherton Syndrome Phase 2/3 study by the end of 2026.
• Topline data from the Netherton Syndrome study is expected to be reported in the second quarter of 2027.
• The company plans to initiate the first formal clinical study in Peeling Skin Syndrome before the end of 2026.
• The QRX009 topical rapamycin program is targeted to advance toward clinical testing in early 2027.
• An IND submission for an additional QRX009 indication is planned before the end of 2026.
• Management believes the current cash position will fund operations into 2028.

Business Segments and Product Lines:

• QRX003 (Netherton Syndrome): Interim data from the Phase 2/3 study (CL-QRX003-004) showed 66.7% (4 of 6) of participants achieved the primary endpoint of a 1-grade or greater improvement in Investigator Global Assessment (p=0.0087). The key secondary endpoint, Global Statistical Test of Global Impression of Change, also achieved statistical significance (p=0.0070). All three participants with moderate to severe pruritus achieved a 3-grade or greater improvement in the Worst Itch Numeric Rating Scale.
• QRX003 (Peeling Skin Syndrome): The FDA cleared the first-ever Investigational New Drug (IND) application for QRX003 in Peeling Skin Syndrome (PSS) on July 9, 2026. The FDA granted Rare Pediatric Disease (RPD) designation on September 8, 2026, and Fast Track designation on September 22, 2026. The EMA granted Orphan Drug Designation on October 14, 2026.
• QRX009 (Topical Rapamycin Platform): Investigator-led studies are planned for Pachyonychia Congenita, Gorlin Syndrome, and Tuberous Sclerosis Complex.
• Awareness Campaign: The "NETHERTON NOW" video series reached over 2.8 million cumulative views and 28 million impressions. A new video featuring a pediatric critical care physician and her daughter was released on September 10, 2026.
• Clinical Publication: A peer-reviewed paper on QRX003 for Netherton Syndrome was published in Dermatology and Therapy on October 20, 2026, detailing a pediatric case report where the patient's IGA score improved from 4 (severe) to 0 (clear) by eight months.

Market and Competitive Landscape:

• There is currently no approved treatment for Peeling Skin Syndrome.
• QRX003 holds eight regulatory designations across the FDA, EMA, and Japan's MHLW for Netherton Syndrome and PSS.
• If approved in the European Union, QRX003 will receive 10 years of market exclusivity for the treatment of Peeling Skin Syndrome.
• The company is positioned to deliver the first approved treatment for Netherton Syndrome.

Risks and Challenges:

• Forward-looking statements involve risks including the ability to obtain regulatory approvals, complete clinical trials on time, and achieve desired results.
• Actual results may differ materially from expectations due to various risks and uncertainties, including regulatory strategy and compliance.
• The company has not yet generated revenue and continues to report net losses.

Management Commentary and Tone:

• CEO Dr. Michael Myers stated the third quarter "substantially strengthened Quoin's clinical, regulatory and financial foundation for long-term growth."
• Management described the interim clinical results as the "first ever overall positive data set published for this disease" (Netherton Syndrome).
• Dr. Myers characterized the period as "exciting times" as the company moves closer to delivering the first approved treatment for Netherton Syndrome.
• Management expressed pleasure in the participation of both new and existing investors in the recent financing.

Other Key Points:

• Announced a private placement financing of up to $50.0 million with healthcare-focused institutional investors on August 28, 2026.
• The private placement included initial upfront funding of approximately $30.8 million and up to an additional $19.2 million upon the potential cash exercise of accompanying ordinary warrants.
• Ordinary shares outstanding increased from 52.4 million as of December 31, 2025, to 168.1 million as of September 30, 2026.
• Additional paid-in capital increased to $114.9 million as of September 30, 2026, from $84.1 million as of December 31, 2025.
• Accumulated deficit increased to $(86.2) million as of September 30, 2026, from $(71.0) million as of December 31, 2025.